2waytrading
Long

30% Upside Move Very Likely Next 2-Months

BITFINEX:BTCUSD   Bitcoin / Dollar
369 4 8
"No one knows what tomorrow will bring" What we know for fact is that market movements can follow patterns and are often predictable by both fundamental technical analysis methods as the old saying " One step forward 2 steps backward. Bitcoin is and has been very volatile instrument and requires a lot of studies before one acts or opens position based on his/her direction bias. After an impulsive downward correction from all time high, there was one primary wave completed which suggested to expect flat or sideways moves that is what has happened. Since price bounced from April lows, it held its ground. So far the price did not breakout either upside or downside since April lows, its very common to see some stiff resistance at and around 633 area. Volume decline early June, and picked up end of July which is an indication that price will soon resume its direction. We are now in wave-3 of intermediate cycle this cycle predicts a price target of $773 area its 30% from yesterday's close. We will take a long position once price moves above $600 with a strong volume . Both 3-EMA and 25% suggest $605 is the best trigger for long.
ChartArt
2 years ago
I suggest to only go long above $610 or above $616.
Reply
One of the important things to look at right now is On Balance Volume (OBV). Have drawn a horizontal line at a point where below the line price tends to decline and above the line price tends to rise.

Price and patterns very important as well. However, without a rise in OBV above that horizontal black line we are going to see prices flat to down on Bitcoin.

snapshot
Reply
2waytrading PRO TerryKinder
2 years ago
Thanks for your well thought comment specially bringing up OBV which in most cases, traders misread or misuse it. Divergence analysis was always quite important, though divergences are not always observed at every important turning point. As per your comment, OBV is suggesting a possible price bounce from April low in line with our comment. One of the most simplistic ways to use the OBV is to see if it makes a new high with each price high in an uptrend, or makes a new low with prices in a downtrend. In your chart analysis, it looks OBV broke above the horizontal line sometime mid June n violated end of July along with price performance but the bounce from April low still has some energy and that violation did not last long, I agree with you betting on in certain price levels by using OBV but so far that does not seem scary to me. If you see the chart we posted our entry level will probably be above your horizontal line. Thanks for the comment.
Reply
TerryKinder PRO 2waytrading
2 years ago
I suspect, although can't know for sure, that OBV will continue to trend down. It seems to oscillate above and below the horizontal line drawn on my chart. This could mean price will retrace to your entry point or below.
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